"The Miss Universe Organization can confirm the resignation of the Pennsylvania title holder after she did not place in the Top 16 at the Miss USA pageant."

"In an email to pageant organizers, she cited the Miss Universe Organization's policy regarding transgendered contestants as the reason for her resignation."

"Today she has changed her story by publicly making false accusations claiming that the pageant was fixed, however the contestant she privately sourced as her reference has vehemently refuted her most recent claim."

"We are disappointed that she would attempt to steal the spotlight from Olivia Culpo of Rhode Island on her well-deserved Miss USA win."

Culpo, who won Sunday, was asked during the show about the inclusion of transgender contestants, which the organization permitted two months ago.

"I do think it is fair," she said. "I could understand how people could be apprehensive to take that road, but I do accept that ... I believe it's a free country."

After the organization changed its rules to allow Jenna Talackova, who was born male, to compete (for Miss Canada), Sheena Monnin was PISSED.

According to Miss Universe officials, she wrote that she refuses "to be part of a pageant system that has so far and so completely removed itself from its foundational principles as to allow and support natural born males to compete in it."

"This goes against ever moral fiber of my being. I believe in integrity, high moral character, and fair play, none of which are part of this system any longer."

NOTE: Talackova placed in the top 12 and won the Miss Congeniality award.

Monnin, meanwhile, stands by her allegation that Miss USA is rigged and that finalists like Culpo and Aubrey Bolte were pre-selected by higher-ups.

She wrote on Facebook that, when she found out that the finalists were predetermined, she "decided at that moment to distance myself from an organization who did not allow fair play and whose morals did not match my own."

She also urges fellow Miss USA contestants to come forward, "then perhaps action can be taken. As for me, I believe her words and will not encourage anyone to compete in a system that in my opinon and from what I witnessed is dishonest."